SMM Oct 31: This week, the operating rate of galvanising producers reached 57.54%, up 0.06 percentage points WoW. In terms of raw material inventory, zinc prices continued to rise this week, prompting downstream enterprises to cautiously consume existing stocks due to high prices, while large plants awaited long-term contract deliveries, leading to a decrease in zinc ingot inventory. The weekly operating rate remained slightly stable because ferrous metals prices rebounded modestly, downstream traders increased demand, and construction in the north normalized as weather improved. Overall, shipments of galvanized pipes improved WoW. Additionally, due to previous rainfall, enterprises began clearing backlog orders this week, resulting in a slight reduction in finished product inventories. Enterprises increased operating rates to replenish stocks, but held a mediocre outlook on future operations. For galvanized structural components, steel tower orders underperformed expectations, showing a weak peak season. Orders for PV mounting brackets pulled back as construction in the northwest gradually halted, while export orders remained relatively stable. Next week's operating rate is expected to drop back slightly to 57.45%.
